You’ve surely heard it before: small businesses are the backbone of the American economy. The 2010 census found that there are nearly 30 million small businesses in the U.S. and that two of every three new jobs come from small businesses. Numbers don’t lie; small businesses are vital to our economy. This raises the question: what is the backbone of America’s small businesses? The answer, in large part, is small business insurance.
What Does Small Business Insurance Do?
Most small business insurance policies cover general and professional liability.
General liability insurance protects your business from claims involving bodily injuries and property damage. If, for example, an injury occurs as a result of your products or business operations, you may be covered by general liability insurance.
A quick note: general liability will not cover employee injuries. These policies are not meant to act as medical insurance for the small business, but rather, as a protection against outside action that may be taken against the business.
Professional liability insurance functions in a similar manner. It helps cover legal fees and expenses resulting from action taken against your business. If your business is held liable due to an operational error, professional liability insurance can cover the damages awarded to the plaintiff. Even if you aren’t found guilty of any wrongdoing, defense costs can escalate quickly. Professional liability insurance provides your business coverage in these scenarios as well.
In addition to the coverages detailed above, many small business insurance plans offer coverages such as inland marine, which protects your business personal property should it be stolen or damaged.
Why Does Your Business Need Insurance?
Simply put, you can’t afford to risk not having insurance. Depending on the nature of your business, a general and professional liability policy can cost anywhere from a few hundred to a few thousand dollars. This is the cost of security for your business from potential claims that can range into the six figures.
Starting a business and making it successful is no easy task. You owe it to yourself to protect your hard work. Look at small business insurance as an investment in your business. Purchasing a policy today could save you hundreds or thousands of dollars in the future and the cost of the policy can be a tax write off. In this light, your policy is an incredibly valuable asset.
Purchase a Policy From Canopy Today!
With Insurance Canopy, you have a reliable partner you can trust. Not too long ago, we were in your shoes—entrepreneurs trying to carve our place in a competitive industry. A few years, and thousands of clients later, we have established ourselves as an industry leader.
We want to help you protect your business as you continue to build and grow. Check out our industry list to see where we can best serve you, and get a small business insurance quote today!
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